BMO Announces Redemption of Dorsey Wright MLP Index ETNs due December 10, 2036

NEW YORK, February 26, 2021 – Bank of Montreal (TSX:BMO)(NYSE:BMO) today

announced that it intends to redeem all of the outstanding Dorsey Wright MLP Index ETNs due

December 10, 2036 (the "Affected Securities"). The Affected Securities are listed on the Nasdaq

under the symbol “BMLP,” and have the CUSIP number 063679104. The pricing supplement

for the Affected Securities may be found at the following link:

https://www.bmoetn.com/Documents/BMLP/BMLP_BMLP_Prospectus.pdf


Capitalized terms used but not defined herein will have the meanings set forth in the pricing

supplement.


BMO will pay the Call Settlement Amount (as described below) to investors holding Affected

Securities on the Call Settlement Date, which is expected to be March 16, 2021.


The Call Settlement Amount payable on the Call Settlement Date will be calculated as specified

in the pricing supplement. The Call Settlement Amount will equal: (a) the product of (i) the

Reference Holder Value as of the Call Calculation Date multiplied by (ii) the Index Factor for

the last Index Business Day in the Call Measurement Period plus (b) the Coupon Amount with

respect to the Coupon Valuation Date immediately preceding the Call Calculation Date if on the

last Index Business Day in the Call Measurement Period the Coupon Ex-Date with respect to

such Coupon Amount has not yet occurred, plus (c) the Adjusted Coupon Amount, if any, minus

(d) the Accrued Tracking Fee as of such last Index Business Day plus (e) the Stub Reference

Distribution Amount, if any, as of such last Index Business Day.


The Call Calculation Date is expected to be March 5, 2021. The “Call Measurement Period” is

expected to consist of the five Index Business Days from March 5, 2021 to March 11, 2021.


The Affected Securities will be delisted from the Nasdaq prior to the open of trading on the Call

Settlement Date.


Holders of the Affected Securities may choose to continue to hold their securities until the Call

Settlement Date, or may choose to sell or redeem their Affected Securities prior to the Call

Settlement Date, in accordance with the terms of the Affected Securities. March 4, 2021, the last

scheduled Index Business Day prior to the Call Calculation Date, will be the last day on which

we will redeem any Affected Securities at the option of the holders. BMO has announced the

waiver of the minimum early redemption size for each of the Affected Securities. Prior to the

waiver, holders of the Affected Securities were required to redeem at least 50,000 ETNs at one

time in order to exercise their right to redeem them.


None of the other exchange traded notes that BMO has previously issued are affected by this

announcement.


BMO does not intend to issue or register any additional Affected Securities on or after the date

of this press release. BMO and its affiliates also intend to suspend any further sales from

inventory of the Affected Securities on March 4, 2021. The market value of these securities may

be influenced by, among other things, supply and demand for the Affected Securities. It is

possible that the suspension of any further sales of the Affected Securities by BMO may

influence the market value of the Affected Securities and the liquidity of the market for the

Affected Securities, potentially leading to insufficient supply, and causing the Affected

Securities to trade at a premium above their closing or intraday indicative value. Any such

premium may subsequently decrease at any time and for any reason without warning, resulting in financial loss to investors who paid this premium when they acquired their Affected Securities.


Investors who purchase the Affected Securities at any time prior to the Call Settlement Date for

an amount that is greater than the Call Settlement Amount that they will receive on the Call

Settlement Date will suffer a loss on their investment. Furthermore, investors who sell the

Affected Securities at any time prior to delisting for an amount that is less than the Call

Settlement Amount they would have received on the Call Settlement Date will also suffer a loss.

In either case, such losses could be significant. Investors will not receive any other compensation or amount for the loss of the investment opportunity of holding the Affected Securities.


About BMO Financial Group

Serving customers for 200 years and counting, BMO is a highly diversified financial services

provider - the 8th largest bank, by assets, in North America. With total assets of $973 billion as

of January 31, 2021, and a team of diverse and highly engaged employees, BMO provides a

broad range of personal and commercial banking, wealth management and investment banking

products and services to more than 12 million customers and conducts business through three

operating groups: Personal and Commercial Banking, BMO Wealth Management and BMO

Capital Markets.


BMO Media Contact:

Kelly Hechler, Kelly.Hechler@bmo.com, (416) 867-3996


Bank of Montreal ETNs

US.ETN@bmo.com, +1-877-369-5412


Internet: www.bmo.com


Bank of Montreal, the issuer of the Affected Securities, has filed a registration statement

(including a pricing supplement, prospectus supplement and prospectus) with the SEC regarding

the Affected Securities. Please read those documents and the other documents relating to the

Affected Securities that Bank of Montreal has filed with the SEC for more complete information

about Bank of Montreal and the Affected Securities. These documents may be obtained without

cost by visiting EDGAR on the SEC website at www.sec.gov. Alternatively, Bank of Montreal,

and any agent or dealer that participated in the offering of the Affected Securities, will arrange to

send the pricing supplement, the prospectus supplement and the prospectus if so requested by

calling toll-free at 1-877-369-5412.

Bank of Montreal, the issuer of the ETNs ("Bank of Montreal" or the "Issuer"), has filed a registration statement (including pricing supplements, product supplements, a prospectus supplement and a prospectus) with the Securities and Exchange Commission (the "SEC") about each of the offerings to which this website relates. Please read those documents and the other documents relating to these offerings that Bank of Montreal has filed with the SEC for more complete information about Bank of Montreal and these offerings. These documents may be obtained without cost by visiting EDGAR on the SEC website at . Alternatively, Bank of Montreal, any agent or any deal participating in these offerings will arrange to send the applicable pricing supplement, any applicable product supplement, the prospectus supplement and the prospectus if so requested by calling toll-free at 1-877-369-5412.
 
The ETNs are senior, unsecured debt obligations of Bank of Montreal, and are subject to Bank of Montreal’s credit risk.
 
The leveraged and inverse ETNs are intended to be daily trading tools for sophisticated investors to manage daily trading risks as part of an overall diversified portfolio. They are designed to achieve their stated investment objectives on a daily basis. You should proceed with extreme caution in considering an investment in those ETNs.
 
The ETNs do not guarantee any return of your investment. For example, with respect to some ETNs, if the closing Indicative Note Value or the Intraday Indicative Value (each as defined in the applicable pricing supplement) for the ETNs is equal to or less than $0 at any time during a relevant trading day, you will lose all of your investment in the ETNs. Even if the Index Closing Level has increased or decreased, as applicable, from the Initial Index Level, you may receive less than the principal amount of your ETNs upon a call, redemption, at maturity, or if you sell your ETNs, with the loss magnified by any leverage, each as described in more detail in the applicable pricing supplement.
 
Leverage (if applicable) increases the sensitivity of your ETNs to changes in the level of the applicable index. Investment suitability must be determined individually for each investor, and the ETNs are not suitable for all investors. The leveraged and inverse ETNs are not suitable for investors with longer-term investment objectives. You should regularly monitor your holdings of the ETNs to ensure that they remain consistent with your investment strategies. In particular, the leveraged and inverse ETNs should be purchased only by sophisticated investors who do not intend to hold the ETNs as a buy and hold investment, who are willing to actively and continuously monitor their investment and who understand the consequences of investing in and of seeking daily resetting investment results, which are leveraged as to some of the ETNs. Due to the effect of compounding, if the Indicative Note Value increases, any subsequent adverse change in the applicable index level will result in a larger dollar reduction from the Indicative Note Value than if the Indicative Note Value remained constant; the converse is also true. The ETNs are subject to intraday purchase risk. The Indicative Note Value of the leveraged and inverse ETNs is reset daily, and the leverage or exposure of the ETNs during any relevant trading day may be greater than or less than that contemplated by the name of a particular leveraged ETN.
 
The ETNs are subject to a call right, which may adversely affect the value of, or your ability to sell, your ETNs. Most of the ETNs do not pay any interest, and you will not have any ownership rights in the applicable index constituents. The Index Closing Level used to calculate any payment by the Issuer of the ETNs may be different from the Index Closing Level at other times during the term of the ETNs. There are restrictions on your ability to request a redemption of the ETNs, and you will not know the amount due upon redemption at the time you elect to request that the ETNs be redeemed. The Issuer may sell additional ETNs, but is under no obligation to do so.
 
Market disruptions may adversely affect your return. Significant aspects of the tax treatment of the ETNs are uncertain.
 
The Intraday Indicative Value and the Indicative Note Value are not the same as the closing price or any other trading price of the ETNs in the secondary market. There is no assurance that your ETNs will be listed or continue to be listed on a securities exchange, and they may not have an active trading market. The value of the ETNs in the secondary market may be influenced by many unpredictable factors.
 
The Issuer or its affiliates may have economic interests that are adverse to those of the holders of the ETNs as a result of its business, hedging and trading activities, or as Calculation Agent (as defined in the applicable pricing supplement) of the ETNs, and may have published research, expressed opinions or provided recommendations that are inconsistent with investing in or holding the ETNs, and may do so in the future.
 
Each index has limited actual historical information. The Index Calculation Agent (as defined in the applicable pricing supplement), may adjust the index in a way that may affect its level, and may, in its sole discretion, discontinue the public disclosure of the intraday index value and the end-of-day closing value of the index. The indices lack diversification and are vulnerable to fluctuations in the applicable sector. A limited number of index constituents may affect each Index Closing Level, and the Indices are not necessarily representative of their focus industry. An index constituent may be replaced upon occurrence of certain events. The manner in which each index selects its components may differ from how other index providers or market participants might do so.
 
Use of Hypothetical Back-Tested Data - The historical data of the Indices shown herein is from the dates displayed. Any index data shown prior to that date is hypothetical and a result of the application of the index methodology to historical data, and has inherent limitations. The creation of hypothetical data necessarily involves assumptions and cannot take into account the impact of financial risk in actual trading. Alternative modeling techniques or assumptions may produce different hypothetical back-tested information that might be more appropriate and that might differ significantly from the information presented herein. The hypothetical back-tested data herein should not be considered indicative of actual results that might be obtained from an investment in a financial instrument referencing the index.
 
Historical and hypothetical back-tested results are neither an indicator nor a guarantee of future index performance or the return of the ETNs.
 
Please see the “Risk Factors” section in the pricing supplement, any applicable product supplement, the prospectus supplement and the prospectus relating to the applicable offering.
 
This information is not intended to provide and should not be relied upon as providing accounting, legal, regulatory or tax advice. We urge you to consult your investment, legal, tax, accounting and other advisers before you invest in the ETNs.

 

MicroSectors™ and REX™ are registered trademarks of REX Shares, LLC (“REX”). The trademarks have been licensed for use for certain purposes by Bank of Montreal. The ETNs are not sponsored or sold by REX or any of its affiliates or third-party licensors (collectively, “REX Index Parties”). REX Index Parties make no representation or warranty, express or implied, to the owners of the ETNs or any member of the public regarding the advisability of investing in securities generally or in the ETNs particularly or the ability of the Index to track general market performance. REX Index Parties’ only relationship to Bank of Montreal with respect to the Index is the licensing of the Index and certain trademarks, service marks and/or trade names of REX Index Parties. REX Index Parties are not responsible for and have not participated in the determination of the prices, and amount of the ETNs or the timing of the issuance or sale of the ETNs or in the determination or calculation of the equation by which the ETNs are to be converted into cash. REX Index Parties have no obligation or liability in connection with the administration, marketing or trading of the ETNs. Inclusion of a security within an index is not a recommendation by REX Index Parties to buy, sell, or hold such security, nor is it considered to be investment advice.

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